Starbucks Reports Record Holiday and Record Q1 FY17 Results
Comparable Store Sales Up 6% in China; Up 3% Globally and in the U.S. and Americas
Consolidated Net Revenues Rise 7% to Record $5.7 Billion; Operating Margin Expands to Q1 Record 19.8%
GAAP EPS Up 11% to $0.51; Non-GAAP EPS Up 13% to $0.52
Card Loads in U.S./Canada Jump 15% to Record $2.1 Billion; Active U.S. Rewards Membership Up 16% to 12.9 Million; Company Reaffirms Outlook for Fiscal 2017
SEATTLE; January 26, 2017 – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal first quarter ended January 1, 2017. Fiscal 2017 and fiscal 2016 GAAP results include items which are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information.
Q1 Fiscal 2017 Highlights:
• Global comparable store sales increased 3% comprised of a 3% increase in the Americas, a 5% increase in CAP, and a 1% decrease in EMEA
◦ U.S. comparable store sales increased 3% comprised of a 5% increase in average ticket and a 2% decrease in transactions. Adjusting for the estimated impact of order consolidation related to the new Starbucks Rewards™ loyalty program, average ticket grew 3% with transactions flat to prior year.
• Record consolidated net revenues of $5.7 billion grew 7% over prior year
• Record Q1 consolidated operating margin expanded 10 basis points to 19.8%
• GAAP EPS of $0.51 increased 11% over Q1 FY16
• Non-GAAP EPS of $0.52 increased 13% over Q1 FY16 non-GAAP results
• Record $2.1 billion loaded on Starbucks Cards in the U.S. and Canada in Q1, up 15% year-over-year; Starbucks Card transactions reached 40% of U.S. company-operated transactions
• Active membership in Starbucks Rewards grew 16% year-over-year to 12.9 million members in the U.S.
• Mobile Order and Pay represented 7% of U.S. company-operated transactions in the quarter, up from 3% in the prior year; Mobile Payment reached 27% of U.S. company-operated transactions
• The company opened 649 net new stores in the quarter, bringing total stores to 25,734 in 75 countries worldwide
“Starbucks is engaging more deeply – and more frequently – and expanding its base of loyal customers faster and more consistently today than ever before,” said Howard Schultz, chairman and ceo. “The trust and confidence our customers have in the Starbucks brand is fueling our flywheel and propelling our business forward in markets and channels all around the world.”
“We are pleased with the record Q1 financial and operating results we announced today, particularly given that the results were delivered in the face of a challenging environment for restaurant retailers overall,” said Scott Maw, cfo. “As always, credit for our success belongs to the more than 300,000 Starbucks partners around the world who proudly wear the green apron and who deliver an elevated Starbucks Experience to our customers now over 90 million times, each week.”
